Chinese shipyard operator Shanghai Bestway Marine & Energy Technology has announced that controlling shareholder Liu Nan has terminated an agreement with Hongmao Shengrong Investment to transfer his controlling stake in the company to the latter, only one week after the two parties signed an agreement for the deal.
According to Shanghai Bestway, after a review on the transacation, the company found that the deal has the risk of triggering a mandatory tender offer which would go against the purpose of the transaction.
Liu’s share transfer plans failed twice in the past two months. He originally planned to sell his 17.81% shares of the company to state-run Yangzhong Financial Holding Group, however the deal was terminated last month as the two parties couldn’t reach a final agreement on the deal.
Shanghai Bestway has been facing challenes due to a lack of new orders and suffered a sharp decline of 72.7% in profit in the first quarter of this year.